Burning The Value Into Gridcoin

b-reis (48) in gricoin • 7 years ago (edited)

My "Burning" Passion for Gridcoin

After reading @guk's piece on generating value for Gridcoin (you can find it here), I had a few ideas about how we could increase the value of Gridcoin, while simultaneously increasing the awareness and practicality of the coin.

The general idea is that companies could purchase whitelisting for GRC, which would then be burnt, increasing the value of each individual coin. I know it sounds crazy, but stay with me here.

Note: I'm relatively new to Gridcoin and the Gridcoin Community, so I may be missing out on some information here. Feel free to correct me on anything I got wrong. I'm just trying to help the Gridcoin community and learn in the process.

The Game Plan

Obviously Gridcoin is a currency. A great one at that. A currency that helps humanity make scientific discoveries while being minted. We all know that Gridcoin is a unique cryptocurrency, but if Gridcoin is to grow we'll have to show the crypto community, and the world, that it's not just Bitcoin with a new coat of paint. We need to include more projects into the fold, private projects that is. We need to make Gridcoin not only currency, but the fuel for a Grid computing revolution.I say we add the option for companies to pay for whitelisting per month(or whatever time period) with GRC. Let me break it down.

A company sends a request to the blockchain to purchase whitelisting.
The blockchain check to see if the company has enough GRC in it's wallet, and if it does, then puts a poll on the blockchain.
The Gridcoin community votes to see if the company is trustworthy to purchase whitelisting. (To prevent any malicious schemes)
If the vote is a yes, then the blockchain takes the GRC from the company's wallet and burns it.

Note: Yes, that's MS paint, and yes I am poor.

With this system we can keep the same whitelisting system, with Nonprofit projects getting voted in alongside the For-profit projects. This way all projects would behave as equals for researchers. Now let me elaborate on why I think burning would be good.

The Burning Question

"Burning" a currency never sounds like a good idea, but hear me out. GRC is an "unlimited" cryptocurrency which could, in theory, inflate indefinitely. Now that may be a tad dramatic, but we do have to deal with inflation, especially if GRC were to become a mainstream cryptocurrency.

I propose that the price of whitelisting should scale to either

The amount of GRC currently in circulation
Or
An amount of an outside currency, whether it be USD or BTC

This way, we would still be burning GRC to counteract the continuous production, but not in massive amounts that could negatively effect the market. So with every new private project added the cost would lower in terms of cost in GRC, but the value of an individual GRC would increase. This means that with every subsequent purchase/burning, the amount of coins burnt would decrease, while the value of GRC would increase until they even out depending on the market.

Conclusion

We could do a lot in one fell swoop

Increase the awareness and value of Gridcoin
Counteract the deflationary nature of Gridcoin
Make Gridcoin not just a valuable currency, but the fuel for distributed grid computing for any trusted private organizations, or companies

Thanks, for reading. Did I have enough "burn" puns? As I said before, I'm new to all of this, but I'm just trying to help out where I can. If I made any mistakes, or I'm wrong about any points on here, let me know. I'm always trying to learn.

Edit: Yes. My Dumbass forgot the "d" in the gridcoin tag, right as I was about to post. I added the gridcoin tag.

Peace

gricoin gridcoin beyondbitcoin science

7 years ago by b-reis (48)

$40.59

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limacoin (40) · 7 years ago (edited)

I support the idea of burning Coins for private projects, if not as well of all voluntary projects. I thought of it also. As the supply of GRC is unlimited, we have to think of a mechanism to restrict / subtract Coins from the supply to gain some value of the Coin.

I do see Vortsac’s argument under 1) and 2) in his comment in the other thread, but I am not able to see his point 3) as I do not see it for Sparc, Golem etc. either.

Why would a private company take all the hassle to implement a BOINC project in the first place? As several projects demonstrate, it is quite complicated to implement a project in a cross platform environment: different OS used, different Hardware (CPUs and GPUs), age of the hardware and so on. I think it is much easier to go to a company with homogeneous Soft- and Hardware to set up a project, than investing in the set-up of BOINC, buying GRIDCOIN, convincing the community that the project is trustworthy to get it whitelisted and so on.

I think it might be much easier to convince a Hardware manufacturer or an Online Retailer to accept GRC as direct payment option (See for example NEWEGG accepting BTC), as a “marketing gag” or another form of supporting public/volunteer computer science as IBM does with World Community Grid. There you create real demand of the GRC. We cruncher might directly buy hardware with the Coins offsetting the electric bills to pay for, and the others “cryptocurrency” aficionado indirectly over the exchange.

What I do not see, if the company will come to the FIAT currency to pay the wages and so on… but this is a whole other story.

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dutch (61) · 7 years ago (edited)

Why would a private company take all the hassle to implement a BOINC project in the first place?

It is actually incredibly easy to implement a project on a full BOINC server. You can get a BOINC server up and running, generating work units, sending them out, receiving the results back and validating them all in the space of a single afternoon. The only real work at this stage is populating your work units, but most of the heavy lifting for that would need to be done regardless of what compute source you are using to solve your problem. If we are talking about hardware optimisation, then yes you are correct and we run into a whole lot more work.

The reason that a company or research institute would want to use BOINC is twofold:

First and foremost, Gridcoin already rewards BOINC crunchers for projects on its whitelist, for free. There is no cost to the project at all. Getting a project whitelisted is trivial if you are a little active in the community and have a solid research proposal with a steady supply of WUs.
Using BOINC requires practically zero hardware investment, and would be far cheaper than renting hardware for your compute cycles. Not only is the upfront cost far higher to invest in hardware, but ongoing costs too. If I get a research project onto the GRC whitelist and double its GRC mint with rain out of my own pocket, you can safely bet cruncher will flock to the work. It would still only set me back some USD$30/day, which is incredibly cheap.

I'm not just making all this up, for what it's worth. I'm a PhD student working on HPC models of the brain, and spend a lot of time tackling endless compute problems. I have also set up my own BOINC server. BOINC is unparalleled in potential for most research applications that are not timestepping simulations (but that is another discussion).

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3 votes

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b-reis (48) · 7 years ago

Exactly! @dutch @limacoin. Sure a private organization/company could set a BOINC server up if they wanted to, but that doesn't guarantee that people would devote processing power to it. Now if they paid to get into the in GRC whitelist, that's a different story. Plenty of people would run the project, especially if you rained GRC to the people who work on it. I still say we add the option for less "noble" projects, if they pay, and the community deems that they're good to do business with.

By less "nobel" I mean private orgs/companies that need the computing power for their own reasons. It would help get Gridcoin's name out their and increase the value of the coin, since we'd be offering a service on top of the currency.

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1 vote

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dutch (61) · 7 years ago (edited)

Now if they paid to get into the in GRC whitelist

This will never happen, by the very purpose of the whitelist. That being said, it is already possible to rain GRC on crunchers who are doing work on a project outside the whitelist. The only benefit a whitelisted project has is that the blockchain will pay crunchers by minting new GRC.

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darth-cryptic (58) · 7 years ago

Using the cross platform nature of BOINC is an optional benefit, not a necessity. You can target whatever platforms you want (Windows only, Mac only, Linux only, Nvidia/Windows only...whatever you want). Also, it isn't necessarily difficult to write code that is easy to recompile for another platform. Depends on the nature of what you are doing. I agree though that I'm not sure Gridcoin is providing any motivation for private BOINC projects. They can already be implemented for free after all and I'm not aware of a lot of them out there. Adding the ability to pay for whitelisting with Gridcoin doesn't seem likely to attract more.